Trying to Improve Your Credit? Don’t Let Your Auto Financing Backfire!

Automotive Finance, Credit Education, Debt Protection, Gap Insurance

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Look at the bright side. Unlike spilt milk or a tragically dropped ice cream... you can take the car back

Whether it’s the result of bad decisions or just a run of bad luck, it’s easy to find yourself with bad credit.

One of the best ways to start trying to improve your credit in Canada is by getting a loan and always making payments on-time. But what if you lose your job or get sick and can’t make your payments? Then not only will you not help your credit, you could end up with worse credit than you started with after the missed payments start piling up.

Don’t let your efforts to improve your credit back fire!

Fortunately, there is a way to start working toward improving your credit while protecting yourself from that loan backfiring. The solution? Debt Protection.

With debt protection, if you become ill or lose your job and can’t afford to keep paying on your car, you can return it. It will be considered an early buy-out by your financial institution so it will not affect your credit rating at all. The payments you did make on-time will still reflect positively on you, and you won’t have to worry about missing any payments in the future.

While some debt protection programs cover only a few life events, we’ve partnered with WALKAWAY Canada. They offer so much more with their debt protection, including coverage for almost all major life events—including unemployment.

Our Walkaway Debt Protection Covers:

  • Involuntary unemployment
  • Physical disability
  • Loss of driver’s license (for age/medical reasons)
  • International job transfer
  • Accidental death
  • Death due to critical illness
  • Self-employed bankruptcy
  • Critical illness that requires hospitalization
  • Temporary unemployment
  • Mental disability

The complementary coverage lasts one year, and affords you the chance to get out of your loan safely if the worst happens. You also have the option to upgrade your debt protection. This will increase your coverage term.

Complementary Debt Protection Sounds Great — What’s the Catch?

There's no diagnosis for a free car.Debt protection doesn’t mean you’re getting your car for free, or Winnipeg would be full of people getting car loans and licking door knobs to get sick so they can score a free car. If you do have to walk away from your loan, you don’t get to keep the car.

That’s a bummer, but it sure beats having your car repossessed and further damaged credit.

The good news is that debt protection can be upgraded to include payment relief coverage. If you lose your job or become ill and can’t make your payments, your debt protection coverage could make those payments for you for up to 12 payments, depending on the level of service you purchase. That should give you time to get back on your feet and start making payments on your own again so you can keep your car — and ideally your credit — intact!

Auto Loan With Peace of Mind

If you’re trying to improve your credit, an auto loan with Walkaway debt protection may be a great place to start. By making on-time payments you should be able to, in time, prove yourself to lenders.

If you’re having trouble getting a loan for your car, we can help! We work with dozens of lenders and can get an auto loan for almost anyone, no matter how bad (or good) your credit is.

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